The credit
method.

The object stays economically useful.

Wave is designed for holders who want capital without immediately giving up their NFT, and for experienced participants who want measured exposure to a collection floor. Each collection is treated as its own market with its own liquidity and limits.

Not one shared risk bucket.

A weak market should not silently contaminate a stronger one. Credit parameters, utilization, and liquidation are modeled independently by collection.

Eligible collateral receives a conservative borrowing limit based on executable liquidity, observed sales, listing depth, and concentration—not a single headline floor.

Numbers in this preview are product-model inputs, not an executable offer.

Position exposure = equity × leverage.

A participant posts equity, draws credit from one market, and routes it into exposure to that same collection. The interface presents total exposure, debt, carry, estimated units, and liquidation floor before confirmation.

Leverage magnifies gains and losses. It is intended to be bounded by market depth, not offered as a decorative multiplier.

Health is a living ratio.

Wave models current collateral value against the liquidation threshold. A higher ratio means more room; a falling floor, rising debt, or stale liquidity can reduce that room quickly.

• 1.50 and above: healthy under the current model.
• 1.10–1.49: watch zone; adding equity or reducing exposure may be prudent.
• Below 1.10: margin zone with elevated liquidation risk.

These bands are interface guidance and must be validated by audited contracts and live oracle logic before mainnet use.

If a position crosses its market threshold, the protocol may unwind exposure or sell collateral to repay debt. Any remaining value is intended to return to the account after debt and applicable costs.

Oracle quality is part of the product.

A safe launch requires manipulation-resistant pricing, stale-data checks, executable-depth validation, circuit breakers, and a clearly disclosed auction or unwind mechanism.

Mainnet requires protocol architecture, oracle selection, audited smart contracts, liquidation infrastructure, market-maker routes, legal review, and a dedicated Wave Privy application.